Rolls-Royce SMR, a small modular nuclear reactor developer majority-owned by Rolls-Royce, announced that it has signed a contract with UK-backed publicly-owned Great British Energy – Nuclear (GBE-N) for the delivery of the UK’s first Small Modular Reactors (SMRs).

The new contract follows the selection of Rolls-Royce in June 2025 as the preferred technology partner for the UK’s first SMR projects, and an announcement by UK Prime Minister Keir Starmer in November that Wylfa, in North Wales, will host the UK’s first SMRs as part of the government’s “Clean Energy Superpower” plan. The SMR program is backed by £2.5 billion in government funding.

The new agreement will allow Rolls-Royce SMR to start work immediately on the delivery of the first three SMRs at Wylfa, through a firm contract allowing Rolls-Royce SMR to develop its site-specific design and order critical components from the supply chain.

SMRs are advanced nuclear reactors that are substantially smaller than traditional nuclear power plants, providing benefits including faster build times and the ability to be deployed closer to the grid, while producing carbon-free energy. Rolls-Royce’s SMR utilizes a pressurized water reactor that produces 1,358MWt of heat. The heat generated in the nuclear core is transferred to the water flowing over the fuel, with the water prevented from boiling by keeping the whole primary system at a high pressure, making the heat transfer much more efficient. The heated water then flows through to steam generators that pass the heat to the lower pressure secondary side, which is allowed to boil, providing steam to a turbine that powers a generator pushing electricity through to the grid.

Chris Cholerton, Rolls-Royce SMR Chief Executive, said:

“This contract unlocks the delivery of our first three units at Wylfa and is a tangible example of the Government’s ‘golden age’ of new nuclear being delivered successfully with British technology.”

In addition to the new contract, the government also announced that the National Wealth Fund is committing up to £599 million for a facility for Rolls-Royce SMR, which will be available to the company to support the development of the SMRs.

National Wealth Fund CEO, Oliver Holbourn, said:

“Today’s announcement marks a significant moment for the future of our nuclear industry. The development of Rolls Royce-SMR’s technology here in the UK will create thousands of jobs and pave the way for an affordable, cleaner, and more secure energy system.”